Digital currencies have seen a sudden and sharp drop in their prices. These include BTC, which lost more than three percent in its value in one day. Ether’s price got a five-percent reduction, and Ripple XRP is down by eight percent. Terra Luna lost up to three percent in one day, though it is still on the higher side by 10 percent from last week.
The sudden downfall in the crypto prices in Asian and European marketplaces has dived because of the increasing fear that China is spreading its latest COVID lockdown to the capital city.
Brain Armstrong, the Chief Executive of Coinbase, has weighed in on the possible cryptocurrency regulatory scenario that could look like the Exchange Commission or the U.S Securities.
The Biden management released executive guiding federal agencies to hammer out rules and regulations for the cryptocurrency space. He spoke on the current episode of the dropped prices, saying it does not seem possible for the SEC to regulate the cryptocurrency industry since we cannot consider all virtual assets as securities.
Armstrong predicted the future of numerous cryptocurrencies. He said many digital currencies like Bitcoin and Ethereum are commodities that Commodity Futures Trading Commission or regulator can regulate. But, he believes some digital currencies like firms increasing money with ICO come other the SEC influence.
Mr. Paul Grewal, the Chief legal officer of Coinbase, got irritated with the SEC because of its proposal to expand its exchange definition published in January 2022. The SEC has faced criticism from the crypto community for the said act. Grewal said the SEC is seemingly crossing its authority limits.
The SEC did not want Coinbase to execute its plans to introduce a crypto lending product. It threatened to take legal action against the crypto exchange if it implements the said plan. Armstrong went on the offensive and accused the regulator of missing primary steps and moving directly to litigation without providing the guidelines to the crypto industry.
In another place, Armstrong said he thinks Coinbase faces hindrances in the roadmap for its products because of Apple’s App Store rules. He accused Apple of outlawing features from the coinbase app and not showing generally friendly behavior to the crypto industry. Some crypto legal experts believe the SEC will continue its long-running legal battle with Ripple XRP till next year. The SEC took legal action against Ripple, alleging the developer performed unlawful security offering through XRP sales.
The Crypto industry has reportedly got influenced by the movement of billionaire Mr. Elon Musk. As news emerged overnight that Twitter could sell itself to the TELSA owner this week, it put a full stop to the most disorderly months in the history of the social media company.
Cryptocurrency has an outsize significance in Elon Musk’s speech cum bid for Twitter. He is known for his aversion to established, scam crypto bots that have been troublesome for the service. Musk did not hesitate to share his thoughts on how to enhance the dogecoin, leading to new speculation that Musk-controlled Twitter will work to support the meme-based bitcoin’s competitor. Last week, Twitter announced that it added support for several users to accept cryptocurrency through Stripe – a payments processer.